South Korea’s Samsung SDI has begun building a 1.7 trillion won ($1.3 billion) factory in Malaysia to make batteries for electric vehicles (EVs) and other uses.
The factory is expected to begin producing the increasingly popular cylindrical batteries starting in 2024, Samsung SDI said in a statement.
The battery maker said it would invest in stages in the factory in Seremban until its completion in 2025.
Seremban, in Negeri Sembilan state, is a rising industrial area in Malaysia, and is closer to Kuala Lumpur International Airport than Kuala Lumpur itself.
The batteries are expected to be used for various applications ranging from power tools and micro-mobility as well as EVs, it said.
“The global cylindrical battery market is forecast to grow from 10.17 billion cells in 2022 to 15.11 billion cells in 2027, showing an annual growth rate of 8% on average,” SDI said.
The factory will be Samsung SDI’s second in Malaysia, and the first to make cylindrical batteries for EV customers.
In addition to Malaysia, Samsung SDI has production sites in South Korea, China, Hungary and the US. Samsung SDI’s clients include BMW, Ford Motor and Volkswagen, among others.
- Reuters, with additional editing by George Russell
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